Costco Wholesale (NASDAQ:COST) Shares Up 1% After Dividend Announcement

Costco Wholesale Corporation (NASDAQ:COST)’s share price rose 1% during trading on Wednesday after the company announced a dividend. The stock traded as high as $985.38 and last traded at $984.75. Approximately 2,342,976 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 2,193,508 shares. The stock had previously closed at $974.80.

The newly announced dividend which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a dividend of $1.47 per share. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date is Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 27.04%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Mizuho raised their price target on Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an “outperform” rating in a report on Thursday. Bank of America started coverage on shares of Costco Wholesale in a research note on Friday, February 27th. They set a “buy” rating and a $1,185.00 price target on the stock. Telsey Advisory Group boosted their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research report on Thursday, April 9th. Roth Mkm reiterated a “sell” rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Finally, Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, December 22nd. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,045.97.

Costco Wholesale Stock Performance

The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The company has a market cap of $443.60 billion, a price-to-earnings ratio of 52.00, a PEG ratio of 4.85 and a beta of 0.99. The firm’s 50-day moving average price is $995.77 and its 200 day moving average price is $944.13.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating the consensus estimate of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same period in the prior year, the business posted $4.02 earnings per share. Costco Wholesale’s revenue was up 9.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Key Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco raised its quarterly dividend ~13% to $1.47 (payable May 15; record May 1), a sign of strong cash flow and management confidence that lifted investor sentiment. Costco Raises Its Dividend
• Positive Sentiment: Major banks bumped price targets — JPMorgan raised its PT to $1,110 and Mizuho to $1,100 while keeping bullish ratings, signaling analyst conviction in upside vs. current levels. JPMorgan Adjusts PT Mizuho Adjusts PT
• Positive Sentiment: Operational and sales momentum: Costco reported strong March net sales and recent quarterly results that beat expectations, reinforcing growth and margin resilience. Analysts cite that momentum as part of the bull case alongside the dividend move. Bull Case for Costco
• Positive Sentiment: Product exclusives and in-warehouse surprises — Costco continues to roll out exclusive large-format items and even popular fast-food products that drive foot traffic and impulse buys. These merchandising wins help differentiate membership value. Costco Adds Fast-Food Product Exclusive Aussie Product
• Neutral Sentiment: Checkout and store tech improvements (automated pay stations, AI pricing/markdowns) aim to speed throughput and reduce perishables waste; these are positive long-term but will take time to scale. Automated Pay Stations Grocers Use AI
• Neutral Sentiment: Competitive dynamics: Sam’s Club and BJ’s are making localized gains and Sam’s Club fee moves could reshape pricing among warehouse clubs; this could benefit Costco if it retains perceived value, but it’s an evolving factor. Competitors Gaining Traction Sam’s Club Fees
• Negative Sentiment: Fuel sales are elevated (adds revenue/traffic), but analysts warn there’s a caveat around margins and sensitivity to gas price swings; persistent high fuel/traffic volatility could dampen same-store trends. Gas Sales Catch

Insiders Place Their Bets

In related news, EVP Teresa A. Jones sold 850 shares of Costco Wholesale stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the completion of the sale, the executive vice president directly owned 4,228 shares of the company’s stock, valued at $4,169,907.28. The trade was a 16.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Claudine Adamo sold 730 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in Costco Wholesale by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock valued at $37,615,889,000 after acquiring an additional 165,349 shares during the period. Geode Capital Management LLC raised its position in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after purchasing an additional 26,690 shares during the period. Morgan Stanley raised its position in shares of Costco Wholesale by 1.1% during the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock worth $8,212,433,000 after purchasing an additional 107,775 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Costco Wholesale during the 4th quarter valued at about $5,195,415,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.